R.ussland has partly waived the dollar in its reserves due to numerous US sanctions In its international reserves, the commodity superpower continues to rely on the US dollar, but the country completely foregoes the currency in its national prosperity fund set up for social purposes. So far, the proportion there has been 35 percent. The central bank had lowered it to zero, reported the newspaper “Kommersant” on Friday. The British pound’s share will be reduced from 10 to 5 percent.
On the other hand, the share of the euro would be increased from 35 to 40 percent and the Chinese currency yuan from 15 to 30 percent. The share of the Japanese currency remains at 5 percent. To protect against inflation risks, the remaining 20 percent would be invested in gold, it said. Russia is reacting to the threat of new sanctions by the US government with the partial waiver of the dollar, said Deputy Prime Minister Andrei Belousov at the St. Petersburg International Economic Forum (SPIEF).
Shares in euros and yuan will be increased
As of May 1, the state fund had the equivalent of 186 billion US dollars (currently 153 billion euros), but only 116 billion dollars as liquid assets on accounts. According to the latest information on May 21, Russia’s state currency and gold reserves were the equivalent of 601 billion US dollars.
The changes in the prosperity fund were made at the direction of the government in order to take into account the “geopolitical tendencies of recent years”, it said. In view of the numerous political conflicts with the USA, Russia had repeatedly declared that it would reduce its share of its dollar reserves. The goal is to “de-dollarize the Russian economy,” said the government, with a view to Washington’s sanctions against Moscow.
In Moscow, it was announced again and again that bills for the sale of raw materials would no longer be in dollars, but in other currencies. According to the government, the shares in euros and yuan will be increased because most of the trade will be carried out with Europe and China.